YOQNEAM, ISRAEL--(Marketwired - November 03, 2016) - MIND C.T.I. Ltd. - (NASDAQ: MNDO), a leading provider of convergent end-to-end prepaid/postpaid billing and customer care product based solutions for service providers as well as unified communications analytics and call accounting solutions for enterprises, today announced results for its third quarter ended September 30, 2016.
The following will summarize our major achievements in the third quarter of 2016, as well as our business. Full financial results can be found in the Investor Information section of our website at www.mindcti.com/investor/PressReleases.asp and in our Form 6-K.
Q3 2016 Financial Highlights
- Revenues were $4.5 million, compared to $5.2 million in the third quarter of 2015 and $4.3 million in the second quarter of 2016.
- Operating income was $1.3 million, or 29% of total revenues, compared to $1.7 million, or 33% of total revenues in the third quarter of 2015 and $1.0 million, or 23% of total revenues in the second quarter of 2016.
- Net income was $1.1 million, or $0.06 per share, compared to $1.4 million, or $0.08 per share in the third quarter of 2015 and $1.0 million, or $0.05 per share in the second quarter of 2016.
- One new win and multiple follow-on orders.
- Cash flow from operating activities was $2.1 million.
- Cash position was $19.0 million as of September 30, 2016, compared with $17.8 million as of September 30, 2015.
Nine Months Financial Highlights
- Revenues were $13.4 million, compared to $16.1 million in the first nine months of 2015.
- Operating income was $3.4 million, or 26% of total revenues, compared with $5.0 million, or 31% of total revenues in the first nine months of 2015.
- Net income was $3.3 million, or $0.17 per share, compared with $3.9 million, or $0.21 per share in the first nine months of 2015.
- Cash flow from operating activities in the first nine months of 2016 was $4.4 million.
As of September 30, 2016 we had 267 employees, compared with 344 as of September 30, 2015.
Monica Iancu, MIND CTI CEO, commented: "Focused on offering the best products and services at the lowest cost, in order to better serve our customers and build a competitive advantage, we implemented across the company, for the last two years, processes designed to improve our operating efficiency and productivity. With these processes in place we believe that the existing workforce is at the size we need in order to reach our goals. In parallel, we invested in developing the next versions of our platforms and we will continue to invest in expanding our offering. The new deal we closed at the beginning of the quarter and the multiple follow-on orders give us better visibility into 2017."
Revenue Distribution for Q3 2016
Revenues in the Americas represented 78.6%, revenues in Europe represented 12.6% and revenues in the rest of the world represented 8.8% of our total revenues.
Revenues from customer care and billing software totaled $3.7 million, or 82% of total revenues, while revenues from enterprise call accounting software totaled $0.8 million, or 18% of our total revenues.
Revenues from licenses were $1.4 million, or 32% of total revenues, while revenues from maintenance and additional services were $3.1 million, or 68% of our total revenues.
New Win and Follow-on Orders
The new win, which we previously announced together with the Q2 2016 results, is with one of the largest Caribbean providers of telecommunications solutions for residential, business and government customers. Similar to other carriers, this customer's main goals are to consolidate multiple platforms, achieve full automation of business processes, reach 360-degree customer view and improve time to market for new marketing initiatives. MIND was selected to support these important goals. MIND signed this new contract to support convergent prepaid and postpaid for their wireless, wireline and broadband business. MIND will deploy its unique full suite that includes Point of Sale, provisioning, mediation, interconnect reporting and much more in addition to billing and customer care.
Our follow-on orders include:
- license expansions;
- additional professional services;
- new mediation and provisioning integrations to support latest network equipment;
- support for EMV smart payment cards for payment terminals and automated teller machines that can accept them.
MIND C.T.I. Ltd. is a leading provider of convergent end-to-end billing and customer care product based solutions for service providers as well as unified communications analytics and call accounting solutions for enterprises. MIND provides a complete range of billing applications for any business model (license, managed service or complete outsourced billing service) for Wireless, Wireline, Cable, IP Services and Quad-play carriers. A global company, with over twenty years of experience in providing solutions to carriers and enterprises, MIND operates from offices in the United States, Romania and Israel.
Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995: All statements other than historical facts included in the foregoing press release regarding the Company's business strategy are "forward-looking statements." These statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements are not guarantees of future performance, and actual results may materially differ. The forward-looking statements involve risks, uncertainties, and assumptions, including the risks discussed in the Company's filings with the United States Securities Exchange Commission. The Company does not undertake to update any forward-looking information.